Romania's Sphera Franchise Group expects 20% rise in net profit in 2024

BUCHAREST (Romania), March 25 (SeeNews) - Romanian fast food chain Sphera Franchise Group [BSE:SFG] said on Monday that it targets a 20% increase of its normalised net profit this year, to 95.7 million lei ($20.8 million/19.2 million euro).

The company also forecasts a 12% growth of restaurant sales in 2024, to over 1.64 billion lei, due to increased sales at existing stores and new openings, it said in a press release.

Sphera Franchise Group has earmarked around 69 million lei for investments in 2024. The funds will go towards opening six KFC restaurants in Romania, refurbishing existing restaurants, and investing in technological advancements.

The group expects controlled cost increases in key areas such as food and material costs, with energy expenses projected to remain stable. Streamlining operations will lead to a reduction in normalised general and administrative expenses relative to total sales, the group said.

Last year, Sphera Franchise Group booked a normalised net profit of 79.8 million lei, up by 80% on the year.

Sphera Franchise Group operates more than 160 KFC, Pizza Hut, and Taco Bell restaurants in the Romanian, Italian, and Moldovan markets. The group has around 5,000 employees.

Blue-chip Sphera Franchise Group's shares traded flat at 28.2 lei as at 1302 CET on Monday on the Bucharest bourse.

(1 euro=4.97158 lei)